Nov. 11, 2002, just-food.com:
Burger-based fast-food chains are seeing a slump in near-term
profits and longer-term prospects. McDonald’s plans to withdraw
from three countries in the Middle East and Latin America and close
175 restaurants in 10 countries.
Up to 600 jobs will be cut – 250 in the U.S., where sales of
continuing products have dropped 2.8 percent in the past year.
A price war with Burger King and Wendy’s has hurt all three
firms. Burger King is for sale by its owner, Diageo, while Wendy’s
admits its 2002 earnings projection was too optimistic.
McDonald’s has also attributed it poor financial performance
to the impact of the cow disease BSE in Japan and Europe. The announcement
closely follows the company’s decision to cut back on new store
openings next year. McDonald’s also warned that its fourth-quarter
earnings would be lower than previously forecast.